The Diagram Below Shows Two Production Possibilities Boundaries for Country

question 1

Multiple Choice

The diagram below shows two production possibilities boundaries for Country X. FIGURE 1-4
-Refer to Figure 1-4.The production possibilities boundaries are drawn concave to the origin.What does this shape of the PPB demonstrate?

• A)the decreasing opportunity cost of producing more of either good
• B)the scarcity of resources in the economy
• C)the constant opportunity cost of producing more of either good
• D)the unfair distribution of resources in the economy
• E)the increasing opportunity cost of producing more of either good

---

Definitions:

Machine Setup

The process of preparing and adjusting machines and equipment for a specific production run or job order.

Planning Budget

A financial plan that estimates revenue and expenses over a specific period in the future, guiding managerial decisions and actions.

Revenue

The total amount of money received by a company for goods sold or services provided during a certain period of time.

Formula

A mathematical equation or rule expressed in symbols, often used in scientific, mathematical, or financial calculations.